One quick note about this: there is obviously plenty of inflation in the prices you pay every day. But most consumer price indices are rigged to understate inflation, as our colleague David Evans pointed out yesterday in Canberra at the Gold Standard Institute conference in Canberra. Trimmed medians…hedonic adjustments…
November 2nd, 2009 | Dan Denning | 4 comments | ContinuedAustralasia
Commentary on Australian and Asian economics, politics and society by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Rally in Stocks and Rise in Aussie Dollar is a Result of the Carry Trade
That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.
October 29th, 2009 | Dan Denning | 9 comments | Continued
Daily Reckoning Reader Mail…
I am an Aussie battler with very little schooling in economics.
Thank you for an alternate view on financial investments. Following the free advice presented on your site over the last 18 months I am reaping the benefits.
October 26th, 2009 | Dan Denning | 5 comments | Continued
Biggest Factor Affecting Consumer Price Inflation is Growth in Bank Credit
Much will be revealed this week in the Aussie market, although a lot will probably remain obscure too. Producer price data for the September quarter comes out from the Australian Bureau of Statistics. Inflation anyone? Maybe not in wages. But certainly in raw materials (energy).
October 26th, 2009 | Dan Denning | 1 comment | Continued
The Dark Underbelly of Australia’s Resource Boom: Chinese Resource Demand
But when it came to resources, most analysts made an exception for the resource sector. The argument was that while everything else was floating on a sea of credit, there was a bedrock of Chinese and Indian demand for commodities which underpinned the Aussie resource market and resource share prices.
October 23rd, 2009 | Dan Denning | 7 comments | Continued
What’s Wrong With the Stimulus Packages
The Australian Senate has been running an inquiry into the stimulus package for which I provided a written submission and afterwards spoke to the Senate Economic References Committee which has been conducting this inquiry.
October 20th, 2009 | Dr. Steven Kates | 11 comments | Continued
Don’t Buy the A-REITs
“Australia stands out like a beacon because the yields here are much greater than other parts of the world,” says AMP Capital Brookfield chief investment officer Kim Redding. He tells Bloomberg that, “If you like the Aussie dollar and you like yield, Australian LPTs would be a pretty good place to be.”
October 20th, 2009 | Dan Denning | 2 comments | Continued
Stocks Better than Bonds When Inflation is a Big Threat
What we make of it is that dividends used to account for a much larger percentage of your total return in stocks than they have in the last twenty years. Times change. There’s no rule that says the future has to be just like the past. But if stocks beat inflation, should you invest in stocks for income or capital appreciation? That’s the second question.
October 19th, 2009 | Dan Denning | 4 comments | Continued
Reader Mail Plus the Race for Arable Farm Land
Maybe we’re wrong. Maybe we’re right. But we’re certainly not in doubt: there is a race for scarce tangible resources (especially arable land) and we’re willing to bet a few Aussie companies can profit from that in the long term.
October 13th, 2009 | Dan Denning | 0 comments | Continued
A Flawed Theory on How to Manage an Economy During a Recession
Your editor spent last night in a discussion with a querulous and drunk Aussie over the stimulus. “It looks like it worked to me,” he said. “Only world economy still growing. GDP up. We’ve got China. Looks like Ruddy and Swanny know what they’re doing. You’re just a hack. You’ve never run a country. And you’re a Yank!”
October 13th, 2009 | Dan Denning | 100 comments | Continued